China is a manufacturing powerhouse- can Trump's tariffs change that?
US President Donald Trump has hit China with a second tariff in as many months, which means imports from there now face a levy of at least 20%.
This is his latest salvo against Beijing, which already faces steep US tariffs, from 100% on Chinese-made electric vehicles to 15% on clothes and shoes.
Trump's tariffs strike at the heart of China's manufacturing juggernaut - a web of factories, assembly lines and supply chains that manufacture and ship just about everything, from fast fashion and toys to solar panels and electric cars.
China's trade surplus with the world rose to a record $1tn (£788bn) in 2024, on the back of strong exports ($3.5tn), which surpassed its import bill ($2.5tn).
It has long been the world's factory - it has thrived because of cheap labour and state investment in infrastructure ever since it opened its economy to global business in the late 1970s.
So how badly could Trump's trade war hurt China's manufacturing success?
Tariffs are taxes charged on goods imported from other countries.
Most tariffs are set as a percentage of the value of the goods, and it's generally the importer who pays them.
So, a 10% tariff means a product imported to the US from China worth $4 would face an additional $0.40 charge applied to it.
Increasing the price of imported goods is meant to encourage consumers to buy cheaper domestic products instead, thus helping to boost their own economy's growth.
Trump sees them as a way of growing the US economy, protecting jobs and raising tax revenue. But economic studies of the impact of tariffs which Trump imposed during his first term in office, suggest the measures ultimately raised prices for US consumers.
Trump has said his most recent tariffs are aimed at pressuring........
© BBC
